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Honest question about buying a house

Answered 4 years ago

What stopped you buying an apartment before kids? I hear people all the time complain about not being able to get into it, but almost everyone I know who owns a house did it on their own. Many started with an apartment at 21 that they kept upgrading. Many waited till having a house before having kids.
Basically anyone I know who made the right choices to owning a house, owns one.
I guess I just get perplexed when people say it’s impossible to get into the market, when my and many of my friends experience is contrary to that.
I’m genuinely not trying to be an asshole, just trying to hear from others (as I would never ask or say my opinions in person as I think they may come off offensive!


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ANSWER
4 years ago
What is the 'right choice' exactly OP?. Just because you and your many many friends chose to do it that way, doesn't mean it's the right choice, as you put it. I had kids first, bought a house, sold it, bought another house, got married, had another kid, sold that house and then bought our forever home. I didn't do it your way and I have every single thing I ever wanted - without struggling. Yes your comment about 'the right choice' is offensive as are some of your replies to many of the other responses here. No need to spit the dummy every time someone has a different opinion to you ✌

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REPLY
4 years ago
Yes have seen many different opinions that have been 'shot down' OP clearly has tunnel vision

REPLY
4 years ago
If others are offended that’s on them, iv said nothing nasty, or personally insulting.
If you get offended at someone’s opinion that’s on you.

Your way is absolutely doable too, also seen that many times, but people who beleive the market is screwing them can’t even see the easiest way to do it let alone when there’s small hurdles (single incomes, other people to support ect)

I “shot down” aka disagreed with what they were saying having anything to do with the market keeping them out and not circumstance and choices.

REPLY
4 years ago
In your original post, you wrote - made the right choice. If that's not what you meant, then you should have amended it. Now you're saying it's not everyone's choice. Not offended at all. I just don't like hypocritical billshitters

REPLY
4 years ago
And don't flatter yourself. No one has been offended by you flapping your gums over the last few days

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4 years ago
Ummmm this comment literally said what I said was offensive.

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4 years ago
You're absolutely full of it.
Mummy and Daddy bought yours. Now you just SAH and make trouble.

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4 years ago
Actually sweetheart my parents died when I was very young so you couldn't be more wrong. Yes I have everything I've ever wanted but I've worked my ass off for every single thing. And what is a SAH? Stay at home mum? No. My kids have all grown and left home. They're doing the exact same thing I did. Worked for a living. I'm now on the brink of retiring and fucked if I'm going to apologise. Your bitterness is all on you

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4 years ago
My unicorn has the squirts today. I reckon it was the oatmeal 😂

REPLY
4 years ago
You still made the right choices clearly too lol
The right choices don’t mean the same choices.
The right choice could mean the right career choice, the right partner choice, the right work choices the right location choice.

REPLY
4 years ago
Look here love, don't try and BS us, sorry your parents died but because of that you got early inheritance and support from grandparents, uncles, aunts and others. We know. You already said as much. Get real and stop trying to elicit sympathy. You are fake. You are not like us battlers on here.

REPLY
4 years ago
Haha inherent my mums dole payment maybe lol. By the time my husbands mother died, we were about 5 years off being mortgage free on all our properties and retiring. Inheriting the Bondi property just sped that up by 4 years. When my husband died his life insurance set up a local drop in center and used the rest to set up a trust fund for my kids so they will be taken care of their entire life.
I would not argue, clearly I’m not like the battlers here, I never make excuses, I listened to anyone around me who had what I didn’t have, and I never had any intention of staying a battler.
And I don’t really agree with a lot of people’s “can’t” because they are usually wrong.

REPLY
4 years ago
^^I think the commenter before you is a little bit jealous. Keep blaming everyone for your shitty little life sweetheart but it's not going to change anything. Keep living in self pity. No-one feels sorry for people who think it's impossible for people to live their dream life without someone else's handout. I feel so sad for you. I really hope your life gets better

ANSWER
4 years ago
My husband bought a house at 21 and before I met him I was saving a deposit for a unit. he sold it and we built a house together at 25, got married, had our daughter at 27. Moved, sold and rented while building another house, had our son 3 months after we moved into the new house. I think you need to get into the market before you have kids, otherwise the bank won’t let you borrow sweet F.A because kids are such a huge financial drain and dependent on you into their early 20’s..... banks have to be very conservative with their lending now too because of all the laws etc

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REPLY
4 years ago
I agree one of the biggest factors I see as genuine reason and being held out of the market is dependants effecting your borrowing power. It’s totally possible after kids but then you have to have a career and or a partner to help get your numbers up.
Getting in before kids is definatly the easiest route.

ANSWER
4 years ago
Some people are now losing money cause they bought young and now suffering financially

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REPLY
4 years ago
We bought young. We've upgraded, nearly paid the house off & have travelled the world. You suffer, regardless of age, if you aren't money smart and/or get into too much debt.

ANSWER
4 years ago
In 2007 before gfc I could have borrowed $190k on my income of $38k plus 2 kids income but then gfc hit and shit boxes went up in price by like 100,000 or more (where I lived) and rentals were ridiculously high!
Now I'm earning about $50k 2 kids, same $500 limit credit card as 13 years ago but can only borrow $170k ish, and still no houses, even crappy ones in that price range.
Is that market or my personal choices? Because that is a clear increase in income but decrease in borrowing power as well as increase in cost of houses.
I'm not complaining about not owning but that's not personal choices there

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REPLY
4 years ago
Also I actually moved to a town that was cheaper to rent in and buy in and still had work and it's still expensive to buy

REPLY
4 years ago
Absolutely market effected. In that case I can see that.
But I can also understand not being able to borrow more.
That being said single incomes have always struggled a bit to get into the market.
Not sure what the solutions for that is
(Assuming you’re single given the 50k is probably a solo income)

Tbh I don’t know what solutions could be in place for a single to buy. Maybe a more penalising terms, to allow them to borrow more then perhaps is room for a way to borrow power more or with safeguards to protect intrest rates.

But even still things can’t go back to costing 200k given current wages. So it probably does make sense to tweak the borrowing power to improve there.

How much deposit did you have?

ANSWER
4 years ago
Mummy and daddy helped them

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REPLY
4 years ago
Mummy and daddy didn’t help me. I did it all myself by working hard and not spending money on drugs and alcohol. Are you jealous?

REPLY
4 years ago
Different responder here ...so you assume if you can't afford a house it's because you take drugs or drink it away?

REPLY
4 years ago
Sometimes yes. My friends partied hard every weekend. Lived Pay week to pay week. Drinking, clubbing, partying every weekend. I went out once a month and saved lots of money. I have a house and they whinge coz they can’t get a deposit together. They tell me I’m lucky or assume my parents gave me money. NO. I worked hard and saved my money. Wasn’t hard either.

REPLY
4 years ago
Well i'm here to tell you I don't take drugs or drink & I still can't afford a house but i'm working on it. So your assumptions are bullshit.

REPLY
4 years ago
I said some people not all people. I’m happy you don’t take drugs. I’m happy for you that you’re working on it. Hope you get there. But my comment stands. I know many people I went to school with who drank and smoked their money away and now sook because they don’t have savings. And I’m sick of those same people assuming my parents gave me money. My parents were poor that’s how I learnt how important it was to save money and use it wisely.

ANSWER
4 years ago
My husband and I bought our first home at age 19. I had been saving money since I was 14. We met age 17 and were both working full time. We lived off his wage and saved all mine for a year. We used all our savings for a deposit and built a simple home. The bank said we could borrow quite a bit more than what we wanted but we didn’t want to get into financial difficulty.

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4 years ago
yes iv seen some people get in a hole over borrowing, it can be hard when they tell you you can have this much to say no

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4 years ago
My friend was trying for a baby so was desperate to get her home loan before she stopped working. With her and her husband working full time the bank said they could borrow $450,000. They were hoping to get $350,000. I warned her not to do it but she wanted a better house than any of her friends. They borrowed 450. She immediately fell pregnant. Stopped working when baby came. Husbands wage couldn’t afford repayments. He told her to go back to work. She said no. She told him he was useless for not earning more. She lost the house and her husband and , as a single mother , had to go back to work. She was stupid and lost it all.

REPLY
4 years ago
You mean mortgage

REPLY
4 years ago
Most people buy a house with a mortgage you idiot. You are still buying the house. You are borrowing to buy the house but you still bought it. That’s why there’s big SOLD stickers on the for sale sign. Because someone bought the house.

REPLY
4 years ago
What I think she's trying to say is that you don't own the house the bank does. So in fact you just brought yourself a big debt.

REPLY
4 years ago
When we bought our first home the banker literally told us that despite what people say, no, the bank does not own the house.

ANSWER
4 years ago
OP, you’ve made your choices and that’s great. Other people have made theirs. Live and let live. Enough of this whole “I’m just interested...” business. You are not trying to get an answer, because many have been provided to you and all you do is rebut. I believe that you have posted this message because you are looking for an opportunity to boast/ be superior/ look down on others. I’d ask another question, why do you have such a strong need to find out about the financial choices that others have made? Are you unhappy and trying to make yourself feel better about your life? I wish you the very best and encourage you to do some soul searching.

ANSWER
4 years ago
If a young person has their parents support them when they are starting out is one thing. But fending for yourself from a young age really limits your ability to get ahead. I moved out at 18 and it was a pipe dream to be able to save and study at the same time - it took years to get ahead as everything I made then was just keeping me alive.
I also think it was easier to but a house when I did because I was in a stable relationship with a saver- but we both moved in with family for a while to get the deposit together faster.

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4 years ago
I see kids staying at home, living rent free or paying cheap board to their parents, which enables them to save. If you don't have that luxury to be able to stay at home, it makes it a lot harder as well

REPLY
4 years ago
It’s not “easy” but it’s also not overly difficult. I was on my own at 17.saved 18k over 4 years at uni.
I just don’t feel it’s the “markets” fault. Or the economy’s fault.
It’s often due to life choices or circumstance that someone can’t buy a house.
I mean I get the obvious ones, but then to blame on m other stuff doesn’t make sense ?

REPLY
4 years ago
OK but if you're on a medium to lower income with kids and a single person, the banks won't even look at you even with 32k. Even if I can save each week and pay high rent.
That's not blaming anyone other than the banks though.

REPLY
4 years ago
I have a friend who took a really crappy place with her two kids after a split and saved the excess for ten years, and got into it that way.

It’s not always pretty or the easiest way but it’s always doable....
if you play the game you win at some point

REPLY
4 years ago
It’s silly to generalise like you are when the statistics says otherwise. ‘Your friend’ stories end up on oprah.. and is getting ‘in that way’ really worth it when your life sucks, compared to the other person who got in ‘with the parent backing,’ or buying at the right time, flipping and all that. Also there are geographical elements which are completely missing from this conversation. I know people who drive one hour to work both ways and I know how miserable their life is. You will say that’s worth it, I will say no it’s not. Not when they are depressed, have no life and are probably wish they were someone else every day, whilst the old guy who just worked at the corner shop 20years ago bought in the the area that has quadrupled, and then he can subdivide. It’s top down now, that’s why people are flipping to try get their little shortcut.

REPLY
4 years ago
I understand all that, but that’s why it’s a vhoice to get into the housing market not the economy or the markets fault.

It’s very achievable with little sacrifice if everyone makes smart choices young.

That’s the difference why our parents generation has such high house ownership is that what you did ours school.
And you didn’t have kids till you were financially ready.
If a person makes good choices from the start they can own a place and build up from it.
If someone doesn’t make those good choices from the start the catchup is obviously a bit harder but still doable.

My whole thing is o just don’t understand how people blame the market, banks, economy or system. When it’s personal life choices that keep you in or out of the market

REPLY
4 years ago
Personal life choices??
So the people I know who bought houses at 21 were gifted or inherited significant chunks of money from their family.
I guess it was a good choice being born into a family with money to give them. Shame on these poor people with broke ass parents. They should have chosen better..

REPLY
4 years ago
Thats clearly an exception to the conversation.
Just as someone with a disability or with children with disability.... beyond their life choices.
Sometimes there is luck and bad luck involved but you could play semantics all day with this case or that case.

I’m talking about people who fall into general population.

No one can actually tell me how the market or the economy is keeping them out of the market.

REPLY
4 years ago
It’s keeping me out, because I’m not going to sink a large amount of money for a piece of crap. I live in a piece of crap right now, but it ‘s close to the city.. so it’s worth way more than it’s value.. in fact, it is disgusting the amount it is ‘worth’. I don’t understand how a piece of crap can be worth a million, with crap heating, small space. I can see the result of the people who buy their property- mostly depressed, overweight and stressed because they are stuck in the world of mortgage payments which are disgusting high. This piece of crap is only affordable by someone who is making a lot of money. Should I then move to whoop whoop to purchase a place , so my quality of life is down dramatically, stuck in the cycle of paying an amount to pay it out.. when I work my two jobs so I can support and live a life that is representative of my income? This is also the area I was brought up in , with my hard working dad and funactioning alcoholic mum..whom it was easily affordable

REPLY
4 years ago
It also took me two degrees to get to this position, and a lot of job interviews to get the ‘good paying’ jobs that I have. But you will rebuttal with saying I made bad choices, or that I should drive ATLEAST an hour to work everyday because that has to do with making less hard working choices.. despite the fact that I am working right now, despite not getting paid for it...because of the causalisation of the industry. Perhaps I don’t agree with the concept of investment properties and neither should you. So you respond, change jobs. And we go on and on. I agree wth the other responder, you are very white viewed. I have travelled the world too, and usually that teaches us that it is not so straight forward, forgotten about Spain right now..? all those who have left in the last 10years just made bad choices...right? Don’t even bother answering..your answer is so predictably naive.

REPLY
4 years ago
If you weren’t interested in discussion and we’re going to assumed my response to your specific reply because of how I relied to DIFFERENT responses why comment at all? Why put that 5 minutes of effort into two comments, when your disinterested in a conversation?
You’re response had some good points but becomes poor when you assume my responses, and life experiences, and think I must come to the same conclusion as you.
I did agree with parts of what you said, but I Think it’s poor taste when they tell me what I should and shouldn’t support.
Despite what others have claimed on here I do have an open mind and was willing to hear reasons the market and economy fail people, but iv yet to hear anything explaining how it’s the markets fault.
Or more so what would anyone have the solution be? Perhaps that’s an easier way to actually address what I don’t understand others views to be.

REPLY
4 years ago
Different responder, but it's clear you do not have an open mind.
You have already decided it's to do with people's personal choices and do not want to listen to other people's views or personal situations which give examples of it not being personal choices.
I also agree from this post you do come across as very naive and white privilege.

REPLY
4 years ago
And the result of people buying their property, to me , just describes people who live in the city and work a 9 to 5 or who get stuck in ways of life they hate. Which may or may not have to do with a mortgage.
A mortgage isn’t for everyone.

And the way I always saw it is that money was going to leave my pocket regardless if it was for rent or mortgage.
At least with the mortgage I had control over the shit box and could make it not shitty.
So again, same facts different viewpoint.
I understand people wanting to rent as they don’t like being locked into a place that’s not easy to get out of, they have other priorities with their money, they can’t handle the feeling of stress some feel over mortgages. That’s all completely valid and understandable and relatable, regardless of the fact it’s not my chosen path.
But these aren’t usually the people who say it’s the market or economy’s fault they rent.

REPLY
4 years ago
Not one person has told me how the market or the economy has kept them from owning.
I have an open mind.
Having an open mind doesn’t mean you’ll just agree with someone. Or not have a back and forth dialect of different opinions.

Opinions don’t change on a whim, they change through ongoing dialect, back and forth differing opinions.

Having an open mind means willing to consider the other sides opinion.
Again I rephrase the question to better understand perhaps how others feel the economy is keeping them out of the market.


What would you implement or change to make the housing market more affordable?

REPLY
4 years ago
You seem absolutely, unable to grasp what people have said..I feel honestly like you must have some sort of processing disorder based on your response. I would suggest you read it again, a number of times and try have a true open mind to reading what people are saying.

REPLY
4 years ago
“ It’s keeping me out, because I’m not going to sink a large amount of money for a piece of crap. I live in a piece of crap right now, but it ‘s close to the city.. so it’s worth way more than it’s value”
Well it seems worth it’s value to her now doesn’t it since she’s uncompromisingly on location?
“I don’t understand how a piece of crap can be worth a million”
Because you buy land not a house.
She doesn’t want to leave her area At all. An hour is apparently the end of the world, so much so she chooses to live in a shit box rather than change her life for 5-10 years to be able to spend 40 in her chosen area.
So clearly wanting to live in a higher demand location. But doesn’t want to pay.
Tell me do you think lane cove should cost the same as mt druitt?
Vaucluse and Blacktown?

REPLY
4 years ago
How stupid. You think you are smart with your little rebuttal, and parrot repeats, but it all just proves that you cannot in fact hold another viewpoint in your head, and think about it for more than 3seconds. My advice still stands, but now I’d suggest you get into selling houses, because like most experts, you know what you are a product of and have no critical thinking, you’re almost religious to a cult..they love those people. Goodluck with it all

REPLY
4 years ago
You mention Mt Druitt and Blacktown. Now I know these areas are traditionally lower socioeconomic areas but have you looked at the housing there lately? Mt Druitt’s median house price is $650,000. Blacktown’s is $680,000. To you that might not be that much but for many people it is. You say make better choices, move further away, try harder which is admirable but is often not a possibility. You seem to have overcome your upbringing and that is wonderful, congratulations. But you have to remember, this not the rule. People often live the life they were born into. Picking yourself up by the bootstraps is great but if you keep getting knocked back down (lack of proper education, fewer job opportunities, poverty) it can be very difficult to do. As for being unwilling to move farther from their work, have you considered the reasons they are staying? Perhaps they are close to family. Maybe they don’t want to spend 2-3 hours a day commuting because it is time better spent with their kids and partners. Their are so many reasons people live where they do and the way they do that covering it with a blanket statement like make better choices is short sighted and close minded.

As for the market being the problem, if you live in an area that has a lot of growth it can be difficult to save enough to enter the housing market. You can save and save but never catch up with the market. I live regional. The average price of housing has increased 22% in the past 5 years. Thankfully we have a house because we bought before the increase really hit. I’m not so sure we could buy as easily today.

REPLY
4 years ago
A house in the dru sure, but you can still get apartments for under 300.
I nearly bought a place in ryde at the end of last year for 299k. Half an hour to George street. These are all mortgages that would cost someone around 280 a week and about 370 with all charges in account.
Assuming most people are paying about 450 at least , probably around 700 upward if they live in Sydney (conservative estimate if your near the city) , for the next 5 years you could now save 250 extra dollars a week instead of having it disappear in rent.
In 5 years you would have a deposit with an extra 100k plus instead of the 20k.
If people look into it a learn how to play the market which yes it involves compromise.
Again not the markets fault.
I mean these are details I hadn’t gone into yet because I can see it won’t fall on listening ears.
Make excuses or make changes.
There’s plenty of people TODAY getting into the market with no help. But the attitude is different.

REPLY
4 years ago
And the tightening of lending criteria? we're still saving but we went to mortgage broker to see what it will take $20,000 in saving still not even remotely enough. We would only be offered $120,000 if approved 😆. We don't have large incomes currently that will change next year. We lived somewhere (not going into it) tight & small with a toddler for 2 years, live frugally & moved regional & guess what its still not enough.
Also what kind of fool would want to get into the market today? That is more of a mess then they're letting on. It's about to get smashed. We we keep saving & wait. Maybe pick up a bargain later.

REPLY
4 years ago
Don’t see a broker, go in and talk to your bank. That’s how iv gotten out of tricky spots.
Also get a credit card with your bank and use it for everything, but pay it every month before Intrest incurs. Do your banking in your local branch. I know it sounds crazy but being on good acquaintance terms with my bank managers has gotten us more money before. A smile and making a few friends always goes a long way.
Sometimes talking to a face in the bank can give you as much as 150k more.
Not always but worth a shot.

REPLY
4 years ago
Even if the market crashes if you borrow within your means you won’t suffer. The market will always rise again. Particular the entry level properties won’t suffer it will be the high medium price range to low high end that will suffer and hits. Even medium price level won’t be a life breaking fall.

There is definitely an element of smart buying if the market crashes, but if the market crashes rents will skyrocket. So those who don’t own will likely be worse off generally speaking. (Higher demand , higher prices)
Your house might not be worth as much as you paid in the interim but your mortgage will stay the same. Rents will go up.

REPLY
4 years ago
You are really obtuse. You are coming across as having a very narrow view of things are done. If you would just do A,B, and C then X,Y and Z will happen. You simply cannot see that yes, people do have real and legitimate reasons for not buying a house. You made your choices for you and your family and that is fine. But you are failing to see and understand that the choices YOU made are not necessarily going to be the right ones for everyone else. People aren’t just “making excuses.” There truly are obstacles out there that can prevent home ownership. It all worked out for you and that is fantastic. Instead of telling people what they are doing wrong try being a bit more empathetic and see their side of the story.


REPLY
4 years ago
Sounds like someone trying to convince us to all go out & buy houses now to hold the market up. Are you a real estate again?

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4 years ago
Rents to go up? Not where I live. I live in a holiday area. Air bnb houses are currently flooding the rental market, fully furnished so those people with investment properties can get some coin. We have an oversupply already & it's only been a month, a few months from now life is going to get very interesting for those people. They'll have to lower the rent to entice people or they going to have to sell, depends how long they can hold out with no income from rentals.

ANSWER
4 years ago
My husband and I bought a cheap house lived frugally then when we got close to paying it off sold it bought a block of land built sold it bought an old home in an expensive suburb. We just kept upgrading our home. A lot of people want the best most expensive, best area right from the start. With high expectations they wait for the right time and miss out.

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REPLY
4 years ago
👌🏻 All sorts of ways to compromise at the start or along the way to get what you want. 🤙🏻
We got to our forever home buy and couldn’t afford beach front in Sydney.
We made the big leap to the Gold Coast. It was hard we left friends and family. But our every day life was what we wanted. Granny even ended up moving up anyways and living with us till she passed away! Ended up travelling all over Australia from the rent on her Bondi house rather than her pension.
It was really hard for my husband to let go of his dream of raising his kids in Bondi, but as scary as change is once we did it we couldn’t believe how happy we were.

When he passed away, he said the last 6 years had been his most happiest.
Change can be scary but lead to to unexpected happiness, or lead you right back to where you originally wanted to be! Lol. Couldn’t even imagine raising my kids in Bondi now !

ANSWER
4 years ago
The fact that Im in Adelaide and we don't have apartments apart from the super expensive cbd ones! But we did buy a 2 bedroom flat so same sort of thing :P

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REPLY
4 years ago
🤙🏻

ANSWER
4 years ago
I think some people’s expectations are too high. I started with a tiny basic home buyers home. After a few years I upgraded and a few years later upgraded again. I could never have afforded the house I’m in now when I first built. Some people want the huge flashy house first and its unrealistic.

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4 years ago
Yes, but you had a market boost. No offence, but I doubt the house you afford now, you could have afforded if you did make ‘profit’ on selling up on your previous houses. My father did literally nothing in 20years income wise, making the same, but his house value went up ridiculously. He literally did a basic job, but now lives like a king. Yes he worked hard all those years, but there is the element of market which needs to be talked about.

REPLY
4 years ago
I also feel this is one that has me not understanding people.
2 bedroom units or 3 bedroom towns houses are always are and a great way to get into the market, I’d say at least 8 people I know have done it that way. And so instead of paying dead end rent for 6-7 years they were building a bigger deposit upon sale allowing a smaller mortgage for a house.

Iv discussed with a friend who’s trying to buy before and tried to help her showed her great little spots in her budget and she didn’t want a bar of them.

Your first buy shouldn’t be your forever home

REPLY
4 years ago
You might make 'profit', but market increases means the upgrade home you want increases even more, so you need more money to buy it. Our tiny first home went up 110k (we also did Reno's) during a boom. By the time we upgraded, houses we looked at had gone up by 200k.

Boomers are a unique story. They bought 40-50 years ago, stayed put & had simple lifestyles during wealth growth years. Travel, internet, mobile phones, online shopping/instant gratification weren't existent/common. They've also access to a whole range of financial benefits we'll never see (franking credits, for example).

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4 years ago
My mother in law "why can't you buy a house" when they bought a house for $19,000 in the late 80s which sold in March for over $500,000 😂

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4 years ago
^ It’s all relative. 19000 on prob peanuts for a salary 500000 on a higher wage

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4 years ago
Minimum wage was also $3 an hour.
The numbers all still mostly line up.
Doctors wouldn’t have even earned over 100k.
Sydney and Melbourne did get a little out of control recently but that happens in any major cities. There’s still affordable housing all over Australia. Even around Sydney if you compromise on location.

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4 years ago
My point was to get into the market you need to start small. Don’t just sit there with enough deposit for a 3x1 and go “ nah, I don’t want to live in a box. I want the big 5x3 with a theatre and games and study. But it’s the markets fault I don’t have the extra $20,000 deposit to get my mansion”. So you sit there and whinge that it’s everyone else’s fault you can’t have a nice house, when actually, you can.

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4 years ago
Yes but while prices have gone up, for those years you were hammering down a mortgage. So the mortgage is lower than when you bought, and your deposit is higher.
So the next time you take out the same mortgage. But you’re now +50k deposit wise and plus 50-100k in property price increase.
So your 300k mortgage once got you say a 320k place. Sold for 420.
You now have 300+100+50+20 the adddition 5-10 years of saving. Bringing you to a place you can potentially afford a 500k place which might be your first house.
Some light Reno’s and more saving 5 years late you upgrade again.

Yes markets have an element of some got really lucky others just standard rises and others unlucky. Some times a developer buys you out and you win big.
I wish I had bought in kellyville 30 years ago! But it still doesn’t mean I didn’t capitalise on what I did have

REPLY
4 years ago
First responder to my post, you are wrong. I didn’t upgrade based on profit. I upgraded because my husband and I went far in our careers. It’s our income that allowed us to upgrade. We absolutely could’ve bought this house at this time if we’d made no profit along the way. I’m not in a mansion, I’m just in a bigger nicer house than my first was.

REPLY
4 years ago
Yes another factor, being further in a careeer and having more borrowing power on top.

REPLY
4 years ago
OP- depends which state. Not everyone lives Syd or Melb.

ANSWER
4 years ago
I got divorced and we sold the house. Now I can't get back into the market.

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REPLY
4 years ago
Again understandable. Did you not get a cut of the sale price though?

REPLY
4 years ago
Is that any of your business? Perhaps the cut wasn’t enough to live on and buy a house?

REPLY
4 years ago
No it’s not more buisness I’m trying to have conversation. If she feels protective of that information then don’t answer, it’s not something to be offended over.

REPLY
4 years ago
Don't you have friends OP?

REPLY
4 years ago
Yes plenty but as I said they are all in my position.
I would genuinely like to here someone’s argument as to how the market or the economy stops them from buying a house because I can’t see it. It’s not my experience and it’s not of any of the people I know bar one friend who says she wants to come into the market.
I saw the other thread with everyone and the general argument of renters that the economy and the market are the problem.
Which iv yet to see anyone point to details that make it an impasse.

REPLY
4 years ago
I’m genuinely after someone who can present a good enough argument to make me see how it could be an economic factor or a market issue that means they can’t buy a house. And I would further more be interested in what they think might be solutions.

REPLY
4 years ago
I was with my partner from my teens to early 30s, and we did not agree on what house to buy. He wanted extravagant. I wanted cheap and basic.
So didn't buy because couldn't agree and now we are separated I am struggling on my minimum wage to be able to afford to borrow enough money for a basic "cheapie" which is $300,000 where I live.

REPLY
4 years ago
Consider seeing a financial advisor if your serious about getting into the market. You might be able to get there faster than you realise.

REPLY
4 years ago
Are you the same replied as the original thoughcos the comment said you sold a house and the last reply said you didn’t buy.

REPLY
4 years ago
I'm the original poster to this answer. I cant get back in because the house was sold for only $20,000 more than what we owed. We bought in 2008 and sold in 2017 (Cairns). Now I'm a single mum of three primary school aged children. No help from their dad so I can't work outside of normal business hours. Plus no bank will look at me right now.
It is what it is. I'm saving and hopefully will get back in in the future.

ANSWER
4 years ago
We bought our first house at 19, with zero help from our parents. We were both living together in a rental, and were planning our wedding. My now husband just made all the right career moves to steadily increase his hourly rates, and with that we saved up what we could for a deposit, plus the first home buyers grant at the time, and we got ourselves a sweet little cottage on a decent sized block. We sacrificed some of the luxuries others our age enjoyed, and settled down. For example, we ate cheap meals (sometimes we had bare cupboards entirely and would only be buying our ingredients as needed - at the end of the day you could pick up a fresh loaf of bread and half a kilo of sausages for $5 from the local butcher and baker).
We didn't go out clubbing, we didn't buy expensive clothes or new clothes for that matter, I declined going to uni and ended up working two jobs at one point.
I remember for 6 months, I didn't even own a bra or a pair of shoes (other than work shoes). I was living in thongs and bikini tops - lucky we lived in QLD and it wasn't cold. We just made do with what we had and saved up as much as possible.

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REPLY
4 years ago
Yes I lived very frugally till about 28.
One year I worked 70 hour weeks got extra housemates and basically saved 90% of my wage. I travelled for 3 years of that money but to make it stretch I lived frugeully while travelling too. I met my husband in Spain and end up settling down a few years later with him.
We still aren’t big spenders. Always looking for a bargain and buying second hand. But we travel a lot.

REPLY
4 years ago
You had a mortgage

REPLY
4 years ago
Do you like unicorns? I got a free one with my mortgage

REPLY
4 years ago
Yeah, so? Most people do have mortgages.

ANSWER
4 years ago
That’s odd. All the people I know who bought houses at 21, lived with their parents, got a chunk of money from their parents and expect more when their parents die. We must live in a different world

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REPLY
4 years ago
I agree. My two closest friends both own their homes. One stayed at home (along with her husband and their son) until she was 25 and built while not paying any rent to her parents. The other brought a house with a 30k deposit that her parents gave her but also her parents went guarantor on the loan.

REPLY
4 years ago
Certainly wasn’t me and my husband. I hated my home so I got a casual job at age 13 and saved as much as I could. My mum made me hand over 50% of my wage AND made me start paying for everything I needed like toothbrushes, shampoo, bus fare to school. Met my husband aged 18 and we used my savings to get a deposit and then built a house. By the time we moved in we both had full time jobs and easily paid our mortgage each month. We had no help from anyone. My siblings all had their own homes by age 20 and we did it all ourselves.

REPLY
4 years ago
Yes and which city?

REPLY
4 years ago
Yes that’s like a lot of people I know...

And to the which city argument, I grew up in Sydney, so what most people did, they moved. Further out or up to the central coast, Wollongong ect. They took a less desired place to live first and then used that to get to where they wanted over the years.
So the city isn’t too relevant.

REPLY
4 years ago
The city isn’t relevant? Oh my god, now you’re just arguing for the sake of it.

REPLY
4 years ago
No it’s not. If you can’t afford that city with what you do, move.

REPLY
4 years ago
What if you can't move? Either because you can't afford to or due to personal circumstances? I want to move but I have grandparents here that I look after, who would have no one if I up and abandoned them. You are VERY short sighted! It's frustrating to read your comments to be honest

REPLY
4 years ago
Then stop reading them. No one is forcing you to even engage with me.

REPLY
4 years ago
🥱😴🥱😴🥱😴🥱😴🥱😴🥱😴🥱😴🥱😴🥱

ANSWER
4 years ago
OP did your parents help you? Be honest

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REPLY
4 years ago
Helped me in the sense of showing me a life I didn’t want. Yes. Tremendously. Lol

ANSWER
4 years ago
The market is very different depending where you live

ANSWER
4 years ago
OP, you’ve asked this question but when people give you reasons why they feel differently you seem to reject them and go back to your black and white views of, “if they made the right choices young they’d have a house, don’t blame the market.” The market is a mess, that is a fact. Some people don’t make what you’d call “the right choices” and that is also ok.

Your post comes across as smarmy and superior. Try being a little more open minded.

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REPLY
4 years ago
Being open minded doesn’t mean agreeing with people.
I’m genuinely after an explanation as to why it’s the markets or economy’s fault.
Most of my circle of friends, have bought houses so I don’t see the other side and the few who don’t, say how lucky we are to own, or how they can’t afford a house ect ect.

How is the market being a mess make it impossible to own a house?

REPLY
4 years ago
I'm going to assume u were brought up in a white, middle class family.
Try being brought up in a lower socioeconomic environment where childhood was a struggle and you don't have access to the same privileges that someone growing up in a middle class family has.
Even if it's not financial help from parents, there were probably other things you received or were taught that people growing up in poverty do not get.
I'm happy you made the right choices, but do not look down on those who were not given the luxury of an easy life.
My income 15 years ago as an 18-21 year old was $13.42! There was no way to save a shot load of cash on that! And that wasn't because of my age, that's because that's what the pay right for a nursing assistant where I worked was!

REPLY
4 years ago
Poor assumption. Mnt druitt and blackheath aren’t exactly majority middle class lol. My dad was gone and I have 4 half brothers only 2 of them share a father and there’s one in between the full siblings.
We grew up on Centrelink money.
And I’m not white lol. I’m awkwardly nothing really. Mix Caucasian , aboriginal and islander (Samoan specifically) in with some Russian and German blood. And that’s me.
If caramel could be an ethnicity that’s what I’d go with if it were my choice lol.
I left home competly at 17 but had periods of living at friends houses for 6 months or a year at a time.
My best friend when we lived in black heath lived in a beautiful house with a great family and her parents took really good care of me for a few years always sending food to school with Jess and letting me sleep over all weekend, so that was a privilege to me that I can defiantly say showed me the life I wanted.

Why not ask me my upbringing instead of making an assumption?

ANSWER
4 years ago
I was in a long term relationship we had two kids, my father died and I bought my brother out his share of his house then we used the equity from it to buy our own house so we got two houses , one we live in and one we rent out

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REPLY
4 years ago
Yes inheritances can certainly help kick starting things.
I paid off all our mortgages with my husbands life insurance and no longer had to work however, up tilll that point we’d had no help and just played the market well.

ANSWER
4 years ago
Well, I've said it before but it is CAPITALISM that is to blame.
The rich get richer, the poor get poorer.
Why you people think capitalism is a great idea is beyond me

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REPLY
4 years ago
I don’t.
I think capitalism and socialism blend nicely and compliment each other and both should have a hold.
I like how Australia is run with private and public sectors. It gives people insentive which capitalism does and extends compassion as socialism.

REPLY
4 years ago
I don't like how services that WE THE AUSTRALIAN PEOPLE OWNED were sold off and privatised without our consent and now we have to pay for services that were already covered by our taxes

REPLY
4 years ago
It’s not perfect it never will be but it’s better than a capitalist society.
Or a socialist society.

ANSWER
4 years ago
We had about 10k in savings for a house before we had our eldest. He was a bit of a surprise considering we were only 19 and I was on birth control. We kept saving during my pregnancy and got up to around 18k before I finished working. While I was on maternity leave I was made redundant so we had to dip into our savings to cover cost of living. I found it hard to get another job, when I did I ended up needing to leave the new job because our my sons health issues. Then my car was written off so that was another 5k for a new to us car. So our savings just dwindled down to around 5k.
Basically we had savings for a house deposit then things beyond our control happened that caused us to use our savings and we just haven’t been able to play catch up yet.

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REPLY
4 years ago
That’s shit luck. Congrats to you for saving that deposit. These stories I definatly understand and sympathies with!!!

ANSWER
4 years ago
I had kids as a teenager. So even though Ive always worked and never relied on government assistance, I just cannot get the salary to be approved. Don't regret my babies though

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REPLY
4 years ago
That’s one of the reasons that make sense to me but that’s not the bank or the markets “fault” (I really don’t mean that offensive!! That’s what I mean by it’s not a good conversation to have with friends!!)